Final answer:
A three-way match involves a purchase order, purchase requisition, and an invoice to ensure that the goods or services received match the agreed-upon terms and prices.
Step-by-step explanation:
A three-way match involves a purchase order (PO), purchase requisition, and an invoice. This process is used in business to ensure that the goods or services received match the agreed-upon terms and prices.
In a three-way match, the purchase requisition initiates the process by requesting the purchase, which is then approved by the appropriate authority. The PO is then created to formalize the agreement with the supplier. Finally, when the supplier sends the invoice, it is compared to the PO and purchase requisition to verify that the quantities, prices, and terms are consistent.
For example, let's say a company ordered 100 units of a product at a price of $10 per unit. During the three-way match, the invoice is checked to ensure it reflects the correct quantity and unit price. If everything matches, the invoice is approved for payment. If not, discrepancies are identified and resolved before payment is made.